Unannounced Audit of Petty Cash and Change Funds, July 2019

7 | U n a n n o u n c e d A u d i t o f P e t t y C a s h a n d C h a n g e F u n d s J u l y 2 0 1 9 2. Reconciliation Identifies Variances Observation During the unannounced cash count, each petty cash and change fund in the sample was reconciled to the amount recorded on the Certificate and Receipt of Imprest Funds. The auditor found that five of the 25 funds, or 20%, did not reconcile to the certificate. Of the five that did not reconcile, three were over by amounts of $5.55, $5.30, and $1.40, and the other two were under by less than $1.00. All of the funds in the sample associated with the Libraries and Historical Resources department failed to reconcile to the certificate (See Appendix B: Petty Cash and Change Fund Reconciliations). Recommendation To ensure that all custodians report cash overages or shortages as they occur in accordance with the Accounting Policies and Procedures, Chapter 9.2 Business Center Receipt, Balance, and Deposit of Cash and Chapter 9.6 Cash Over and Short . Management Response We are in agreement with the recommendation. Results of findings have been communicated to the Library System management team and staff. In order to ensure departmental compliance, we will continue to communicate the policy requirement to report cash overages or shortages as they occur.